More Than 8,000 Homeowners in All 50 States Were Tricked, Indictment Says

Two California men and a New York man have been charged in connection with an alleged $18.5 million mortgage modification fraud, believed to be the largest charge of its kind, U.S. officials said.

An indictment alleges that 37-year-old Ped Abghari, also known as Ted Allen, 43-year-old Dionysius Fiumano, and 40-year-old Justin Romano defrauded more than 8,000 homeowners in all 50 states by promising that they would be preapproved for lower mortgage payments through the Home Affordable Modification Program, according to Preet...